What happens to losses or gains accrued in the Advertising Fund for Amerispec Inspection Services?

According to the 2025 FDD, any losses or gains accrued in the Advertising Fund for Amerispec Inspection Services will be carried over to subsequent fiscal years. Furthermore, any interest earned by the Advertising Fund will be used to cover expenses related to the promotion of the AmeriSpec Inspection Services' Names and Marks before any principal is applied to those expenses.

This means that if the Advertising Fund has a surplus in a given year, the excess funds will not be distributed to franchisees or used for other purposes. Instead, they will be reserved for future advertising and promotional activities. Conversely, if the fund experiences a shortfall, the deficit will be covered by future contributions to the fund. The franchisor, AmeriSpec Inspection Services, retains sole discretion over advertising methods, media selection, advertising locations, and the content of advertising campaigns and promotional programs.

For a prospective Amerispec Inspection Services franchisee, this policy provides some assurance that advertising funds will be managed responsibly and used exclusively for their intended purpose: promoting the brand. The franchisee can also request an annual statement of the Advertising Fund's financial condition, certified by an executive officer of the company, providing transparency into how the funds are being managed. However, it's important to note that AmeriSpec Inspection Services does not guarantee that individual franchisees will directly benefit from advertising in their local market.